The Effects of Employment Shocks on the Self-Employed: Evidence from Discontinuities in Professional Golf
147 Pages Posted: 29 Jul 2019
Date Written: July 25, 2019
I study self-employed, professional golfers to understand the effects of employment shocks on future earnings and productivity. I exploit discontinuities in the PGA TOUR’s membership assignment mechanisms to estimate the long-run effects of temporary employment shocks. I find large initial treatment effects on earnings. However, these effects quickly dissipate and there are no effects on performance. To understand the mechanisms behind these results, I compute job transition rates for golfers and find evidence of a highly fluid labor market. In particular, high exit rates from the PGA TOUR can largely account for the convergence in outcomes between treatment groups.
JEL Classification: Z22, J49, J69
Suggested Citation: Suggested Citation